In an economy where nominal incomes adjust equally to changes in the price level, we would expect the long-run aggregate supply curve to be:
a. vertical

A surplus occurs when the quantity of a good supplied at the existing price is greater than the quantity demanded

Indicate whether the statement is true or false

Comment on the following statement: "The shape of a firm's long-run average cost curve is determined by both external and internal economies (or diseconomies) of scale."

What will be an ideal response?